A Chapter 7 bankruptcy is the most common form of bankruptcy. You do not need to enter a repayment plan under Chapter 7. Instead, any non-exempt property will be sold by the trustee to repay your creditors. This process is handled under the supervision of the court and in line with the Bankruptcy Code. However, the property that will qualify as exempt will depend on your state’s statutes. So, it is important to discuss your assets with your attorney prior to filing.
How Do I Qualify for Chapter 7?
In order to know if you qualify, you will need to pass a “means test.” The means test is used to determine your eligibility to file under Chapter 7. Again, the amount to qualify for this will vary by state. The test uses your income, expenses, and household size to determine if you qualify for Chapter 7. In essence, the test is designed to ensure that you can go through the bankruptcy process. Click here to read more about how a means test works.
If you live in Southern California and are considering filing for bankruptcy, call our office today to set up a consultation appointment. Our attorney will go over your unique situation and map out the best options for you.